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Valence Industries wants to know its cost of equity. Its chief financial officer (CFO)believes the risk-free rate is 5 percent, equity risk premium is 7

Valence Industries wants to know its cost of equity. Its chief financial officer (CFO)believes the risk-free rate is 5 percent, equity risk premium is 7 percent, and Valences equity beta is 1.5. What is Valences cost of equity using the CAPM approach?

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